UK and Hong Kong (HK) tax treaties and issues

August 4, 2021

British may move or invest in Hong Kong. Hong Kongers may move or invest in the United Kingdom (UK). There are tax treaties between Hong Kong (HK) and the UK to prevent double taxation. British and Hong Kongers need to understand how these tax treaties work.

It is possible for both British and Hong Kongers to pay tax in both countries. This means they have overpaid tax. Understanding the tax treaties allows British and Spanish taxpayers to pay the least tax.

Please note that Hong Kongers do not pay tax to the Inland Revenue Department (IRD) in Hong Kong on foreign earned income. This means that Hong Kongers need to consider UK tax more.

Where you live dictates where the majority of tax will be paid, there is a clear distinction between being a resident and tax resident. British and Hong Kong people moving countries living abroad need to be mindful of this distinction to avoid tax penalties and tax overpayments.

You usually pay tax in the UK and Hong Kong that generates income. A tax credit will be provided to you to reduce the tax paid in the other country.

The Hong Kong tax year runs from 1st April to the following 31st March and tax returns must be filed with the Inland Revenue Department (IRD) by June

The UK HMRC tax system works on a fiscal tax year running from 6th April to the following 5th April. Self-assessment tax returns must be submitted to HMRC by 31st January following the fiscal tax year. The tax liabilities of the taxpayer also need to be paid on 31st January

Optimise Accountants provides tax support to landlords/property investors to help grow their wealth and minimise tax: income tax, capita; gains tax (CGT), inheritance tax (IHT), corporation tax and Stamp Duty Land Tax (SDLT). Optimise also helps expats understand taxes in the United States, United Kingdom, Spain and Hong Kong
www.optimiseaccountants.co.uk

No comments yet

The comments are closed.